1) Describe the budgeting process and the benefits it provides.
2) Fill in the missing information by identifying dollar amounts a, b, c, and d. All
transactions were for cash.
3) What are opportunity costs? Illustrate with an example.
4) Why does a company use its cost of capital as the minimum required rate of return
for its capital investment decisions?
5) Indicate how each event affects the elements of financial statements. Use the
following letters to record your answer in the box shown below each element. You do
not need to enter amounts.
Green Bay Corporation used the allowance method to account for uncollectible
accounts expense. On June 20, 2012, Green Bay wrote off an uncollectible account in
the amount of $3,000. On September 1, 2012, the account was collected. How would
the appropriate entries on September 1 affect the financial statements?